iPhone supplier warnings point to weak sales

Shawn Knight

TechSpot Staff
Staff member

Additional evidence is mounting that suggests the iPhone XR may not be selling as well as Apple had anticipated.

Earlier in the month, it was reported that Apple was not making full use of assembly partners Foxconn and Pegatron. The services of Wistron, a standby assembler, would not be needed at all.

This week, reports surfaced claiming some of Apple’s key component suppliers have significantly trimmed their financial forecasts.

Lumentum Holdings Inc., the primary supplier of the Face ID technology in Apple’s iPhones, slashed $70 million off its forecast on Monday according to Reuters. Japan Display Inc. cited lower smartphone demand when trimming its outlook and British chipmaker IQE Plc also expects to generate less revenue in the current period.

Share value in Apple closed at $204.47 at the bell last Friday. As of writing, the stock is trading at $189.76.

Apple likely had some inkling that iPhone sales growth was stalling out. After all, it was revealed during its most recent earnings call that this would be the last quarter in which the company publicly shares how many devices it sells per three-month period.

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Theinsanegamer

TS Evangelist
Surprise, when you charge more for an iphone then a professional work laptop, people *gasp* stop buying them as much! Amazing right?!?

Hell, the most expensive iphone costs more then I paid for a heavy duty big block V8 pickup truck. That is just an asinine amount of money to spend on a PHONE!

At some point they have to run out of upper class buyers willing to buy this years new shiny, right?
 
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